Accounting and reporting manual for political committees

78 Pages·2001·1.4 MB·English

by  Montana. Office of the Commissioner of Political Practices

ACCOUNTING
and
REPORTING MANUAL
for
POLITICAL COMMITTEES
Prepared and Published by
Commissioner of Political Practices
1205 Eighth Avenue
Post Office Box 202401
Helena, MT 59620-2401
Telephone: [phone]
Fax number: [phone]
SWTF Documms
COLLECTION
MONTANA
2001 6).,tuoKM.^y
HELENA, MOMTANA
59r
,
November Printing
MONTANASTATELIBRARY
3 0864 0015 2005 8
DATE DUE
MAR
1
ACCOUNTING
and
REPORTING MANUAL
for
COMMITTEES
POLITICAL
Prepared and Published by
Commissioner of Political Practices
1205 Eighth Avenue
Post Office Box 202401
Helena, MT 59620-2401
Telephone: [phone]
Fax number: [phone]
2001 Edition
November Printing

TABLE OF CONTENTS
INTRODUCTION
iv
PART1: POLITICAL COMMITTEES
POLITICAL COMMITTEE
Definition 1
PRINCIPAL CAMPAIGN COMMITTEE
Definition 1
Ballot Issue Committee 2
Particular Candidate Committee 2
Leadership Political Committee 4
INDEPENDENT COMMITTEE
Definition 4
Political Action Committee 4
Political Party Committee 5
INCIDENTAL COMMITTEE
Definition 5
Incidental Committee 6
SUMMARY
6
PART POLITICAL COMMITTEE ACCOUNTING
2:
TREASURER
Appointment 7
Cerfication 7
Keeping Accounts 8
DEPOSITORY
Designation 8
Certification 9
RECEIPTS
Contribution defined 9
Depositing contributions 9
Statement of contributions 9
Contributions by check 10
Cash contributions 10
Recording contributions 10
Contributor card 11
RECEIPTS, continued
Loans 11
Mass collections from fundraising events 12
In-kind contributions 12
Interest, rebates, and refunds 13
Earmarked contributions 13
Donations/items not considered contributions 14
LIMITATIONS ON CONTRIBUTIONS
Unlimited contributions 14
Contribution limitations 14
Individual and political committee limitations 15
Aggregate political party committee limitations 15
Aggregate PAC limitations for legislative candidates 15
ILLEGAL CONTRIBUTIONS
Corporate contributions 16
Anonymous contributions 17
EXPENDITURES
Definition 18
Petty cash fund 19
Payroll account 20
Savings account 20
Bank service charges 21
PART POLITICAL COMMITTEE REPORTING
3:
STATEMENTS AND REPORTS
Obtaining forms 22
Who must statements 22
file
Who must file reports 22
Where to file statements and reports 23
Report periods and due dates 24
Failure to file statements/reports 24
PREPARING STATEMENTS
FORM C-2. STATEMENT OF ORGANIZATION 25
PREPARING REPORTS
Required forms 26
FORM C-4. INCIDENTAL POLITICAL COMMITTEE REPORT
FORM C-4. First Page: Filing Designation 27
FORM C-4. First Page: Reporting Period 27
FORM C-4. First Page: Name and Address 27
PREPARING REPORTS, continued
FORM C-4. First Page: Cash Sumnaary 27
FORM
C-4. First Page: Certification 28
FORM C-4. First Page: Schedule A: Receipts
Sections 1 through 3 28
FORM C-4. Schedule B: Expenditures 29
FORM C-4. Schedule C: Corrections 29
FORM C-6. POLITICAL COMMITTEE FINANCE REPORT
FORM C-6. First Page: Filing Designation 29
FORM C-6. First Page: Reporting Period 30
FORM C-6. First Page: Name and Address 30
FORM C-6. First Page: Cash Summary 30
FORM
C-6. First Page: Certification 31
FORM
C-6. Schedule A: Receipts
Sections through 8 31
1
FORM C-6. Schedule B: Expenditures
Sections and 2 33
1
FORM C-6. Schedule C: Debts Not Yet Paid 34
FORM C-6. Schedule D: Corrections 35
FORM C-7. NOTICE OF PRE-ELECTION CONTRIBUTIONS 35
REFERENCES
APPENDIX: SAMPLE COMPLETED FORMS

INTRODUCTION
The purpose of this manual is to provide a practical guide to accounting and
reporting procedures for treasurers of political committees and others who are
involved in the election process.
This manual is nota substitutefor{he \a\NS and rules governing campaign finance
and practices. Specific citations are noted throughout the manual. If precise legal
language is required, users of this manual need to consult Montana Code
Annotated (MCA) and Administrative Rules of Montana (ARM).
MCA
Title 13, chapter 37 provides for public disclosure of contributions and
expenditures made to influence elections; therefore, accurate disclosure of those
transactions requires: (1) an understanding of the laws and rules; and (2) the
maintenance of detailed accounts from which periodic finance reports can be
prepared.
The manual is divided into three major parts: POLITICAL COMMITTEES,
POLITICAL COMMITTEE ACCOUNTING, and POLITICAL COMMITTEE FINANCE
REPORTING.
Part 1, POLITICAL COMMITTEES, defines and describes the various types of
political committees and the specific reporting requirements for each type.
Part 2, POLITICAL COMMITTEE ACCOUNTING, discusses the responsibilities of
committee treasurers, outlines basic record maintenance practices and accounting
principles, defines and provides examples of contributions and expenditures, and
describes contribution limitations as well as contributions that are illegal to give and
to receive.
IV
Part 3, POLITICAL COMMITTEE FINANCE REPORTING, identifies the different
statements and reporting forms required for filing, who must file them, how the
various forms are to be completed, and when and where these forms areto befiled.
The Appendix contains sample completed forms. A supplement to this manual
contains blank forms that may be reproduced as needed.
Treasurers ofcommittees who have questions concerning accounting practices and
reporting procedures are urged to write, call, or fax the Commissioner of Political
Practices. The address, telephone number, and fax number are provided on the
front cover and on the front page of this manual.